The US Securities and Exchange Commission (SEC) has urged a federal court to reject Coinbase’s extensive subpoena requests for crypto-related documents.
In court documents filed on Monday, 5 August 2024, the SEC lawyers criticized the subpoenas as overly broad and an attempt to obtain “essentially all documents that in any way relate to crypto.”
The development marks the latest episode in the ongoing legal battle between the SEC and Coinbase. The crypto exchange is seeking to subpoena the agency and its employees, including Chair Gary Gensler, for communications and records that may aid its defense in the upcoming trial.
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SEC Sues Coinbase Over Operating As Unregistered Exchange
The SEC filed civil charges against Coinbase last year, alleging it operated as an unregistered securities exchange, broker, and clearing agency. The agency also accused the exchange of unregistered securities sales related to its staking products.
In April 2024, Coinbase initiated its first request for the SEC to produce documents. By June, Coinbase had expanded its demands to include Gensler’s personal communications concerning crypto during his tenure and the four years preceding his appointment.
Coinbase also issued a similar subpoena to the Massachusetts Institute of Technology (MIT), where Gensler previously taught blockchain technology. However, the company recently informed the court that it would not pursue records outside Gensler’s official capacity.
The SEC rebuffed these requests, particularly Gensler’s personal communications, labeling them as a “blatant impropriety.” In a letter, the SEC asked District Judge Katherine Polk Failla of the Southern District of New York to dismiss Coinbase’s demands.
Judge Failla convened a pre-trial conference on July 11 to address the opposing requests. During the phone conference, she expressed concerns about the burden imposed by inquiries into Gensler’s statements before he assumed the position of SEC Chair, rejecting Coinbase’s request.
【SEC Asks NY Court to Deny Coinbase’s ‘Breathtakingly Broad’ Subpoena Request】
The court documents, filed Monday, are the latest jab in the ongoing fight between the @SECGov and @coinbase over the crypto exchange’s attempt to subpoena the agency and its employees, including… pic.twitter.com/K22SxiT2Vr
— MetaEra (@MetaEraHK) August 6, 2024
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Judge Asks Coinbase To Narrow Its Subpoena Requests
Judge Failla directed Coinbase to revise its approach and ordered the company to file a motion to compel, serving as a basis for resolving the discovery dispute. Subsequently, on 23 July, Coinbase submitted a motion to compel, slightly narrowing its request but largely maintaining its stance.
Instead of seeking access to Gensler’s private communications spanning his entire professional history, the exchange decided to narrow its scope and focus solely on his communications during his tenure as SEC Chair.
More recently, Coinbase has accused the SEC and the Federal Deposit Insurance Corporation (FDIC) of improperly blocking its document requests. The exchange alleges that the regulators are blocking access to documents that should be available under the Freedom of Information Act (FOIA).
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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